Federal Direct Subsidized/Unsubsidized Loan Program
Undergraduate Students:
A subsidized loan is awarded on the basis of financial need. The federal government pays interest for the loan ("subsidizes" the loan) until you graduate or stop attending half-time and during authorized periods of deferment.
An unsubsidized loan is not awarded on the basis of need. You'll be charged interest from the time the loan is disbursed until it is paid in full.
*Please Note: The One Big Beautiful Bill Act (OBBBA) requires significant updates to Federal Direct Loan programs. Carefully review the information below for details on the updates.
*Please note that we are actively monitoring this legislation and will make updates to this page as they become available.
A student may be eligible if they are eligible for federal financial aid and are enrolled in a degree seeking program and at least 6 credits per semester at Stockton University.
Eligible students borrow directly from the U.S. Department of Education.
Beginning July 1, 2026, Federal Direct Subsidized and Unsubsidized loans will be prorated based on the number of credits in which a student is enrolled/academically engaged.
Similar to the Pell grant, students are offered the maximum amount of Federal Direct Loan funding per year based on full-time enrollment. See below for an enrollment guide detailing the number of credits in which a student must be enrolled/academically engaged to be considered full-time for financial aid purposes.
| Fall/Spring | Summer | |
| Undergraduate Students | 12 Credits | 12 Credits |
With the new Federal Direct Loan proration requirement, full-time students will receive the full amount of their annual loan offer. If a student is enrolled less than full-time, they will not be eligible to receive the full-time amount of loans offered to them. Instead, the university will calculate the amount of loan funding the student is eligible to receive based on the number of credits in which they are enrolled/academically engaged.
See below for annual Federal Direct Loan limits.
If dependent, your subsidized and unsubsidized Direct Loan annual eligibility is as follows:
|
|
0-31 Earned Credits
|
32-63 Earned Credits
|
64 and Above Earned Credits
|
|---|---|---|---|
|
Subsidized
|
$3,500
|
$4,500
|
$5,500
|
|
Unsubsidized
|
$2,000
|
$2,000
|
$2,000
|
|
Total
|
$5,500
|
$6,500
|
$7,500
|
If independent, your subsidized and unsubsidized Direct Loan annual eligibility is as follows:
|
|
0-31 Earned Credits
|
32-63 Earned Credits
|
64 and Above Earned Credits
|
|---|---|---|---|
|
Subsidized
|
$3,500
|
$4,500
|
$5,500
|
|
Unsubsidized
|
$6,000
|
$6,000
|
$7,000
|
|
Total
|
$9,500
|
$10,500
|
$12,500
|
The formula we will use to determine how much of a federal direct loan a student may receive in a semester based on the number of credits in which they are enrolled is below.
Credit Hours Enrolled
_____________________________________________
Credit Hours required to be full time in a term
x Annual Direct Subsidized/Unsubsidized Loan Limit
At minimum, students need to be enrolled in at least 6 credits to receive any Federal Direct Loan funding.
When added to other financial aid resources, the loans amount may not exceed the cost of attendance at the time it is disbursed to the school.
Aggregate (Lifetime) Borrowing Limits:
In addition to the limits on the amount in subsidized and unsubsidized loans that you may be eligible to receive each academic year (annual loan limits), there are limits on the total amounts that you may borrow from the U.S. Department of Education for undergraduate and graduate study (aggregate loan limits).
The aggregate loan limit for dependent undergraduate students = $31,000
The aggregate limit for independent undergraduate students = $57,500
To have these loans applied to a student's account, the student needs to accept them within the goStockton portal and complete Entrance Counseling and a Master Promissory Note on studentaid.gov.
Visit stockton.edu/fafsa for instructional videos guiding you through the process. Once completed, the university will receive notice from the federal government and your account will be updated within 3-5 business days.
You will begin repayment on the principle 6 months after you stop attending half-time or graduate.
If you have received a subsidized, unsubsidized or PLUS loan under the Direct Loan Program or the FFEL Program, you must complete Exit Counseling each time you:
- Drop below half-time enrollment
- Graduate
- Leave school
Exit Counseling provides important information regarding your rights and responsibilities to the federal loans you borrowed while attending school. It also provides examples of the various repayment plans available and loan forgiveness options for certain professions. It is an important and valuable tool to prepare you for loan repayment success.
You must complete Exit Counseling no sooner than 30 days prior to your graduation date. Our office will be notified electronically once you have successfully completed the module. This process usually takes 1-2 business days. Holds are placed on your Stockton academic transcript and degree until the requirement is complete.
If you have completed your Exit Counseling during a previous term of enrollment, you must complete a new Exit Counseling 30 days prior to your graduation date.
It is important for students to be proactive and be sure they are making their payments on time. Students who make late payments or do not repay their student loans will be subject to late fees and could go into loan default, which affects their credit and ability to borrow in the future.
Below is a sample Loan Repayment Schedule for a sample loan of $3,500 with an interest rate of 3.73% and a standard 10 year repayment term.
| Year | Total Payment | Principal | Interest | Total Interest | Unpaid Balance |
|---|---|---|---|---|---|
| 0 | $3,500 | ||||
| 1 | $419.88 | $294.33 | $125.55 | $125.55 | $3,205.69 |
| 2 | $419.88 | $305.49 | $114.39 | $239.94 | $2,900.22 |
| 3 | $419.88 | $317.10 | $102.78 | $342.72 | $2,583.15 |
| 4 | $419.88 | $329.11 | $90.77 | $433.49 | $2,254.05 |
| 5 | $419.88 | $321.26 | $78.26 | $511.75 | $1,912.47 |
| 6 | $419.88 | $354.58 | $65.30 | $577.05 | $1,557.92 |
| 7 | $419.88 | $368.02 | $51.86 | $628.91 | $1,189.92 |
| 8 | $419.88 | $381.99 | $37.89 | $666.80 | $807.96 |
| 9 | $419.88 | $396.48 | $23.40 | $690.20 | $411.50 |
| 10 | $419.88 | $411.52 | $8.36 | $698.56 | $0 |
Learn more about Federal Direct Subsidized and Unsubsidized loans for undergraduate students at studentaid.gov.
Graduate Students:
An unsubsidized loan is not awarded on the basis of need. You'll be charged interest from the time the loan is disbursed until it is paid in full.
*Please Note: The One Big Beautiful Bill Act (OBBBA) requires significant updates to Federal Direct Loan programs. Carefully review the information below for details on the updates.
*Please note that we are actively monitoring this legislation and will make updates to this page as they become available.
A student may be eligible if they are enrolled in a degree seeking program and at least 5 credits per semester in each of the fall and spring semesters and 3 credits per semester in the summer semester at Stockton University.
Eligible students borrow directly from the U.S. Department of Education.
Beginning July 1, 2026, Federal Direct Subsidized and Unsubsidized loans will be prorated based on the number of credits in which a student is enrolled/academically engaged.
Students are offered the maximum amount of Federal Direct Loan funding per year based on full-time enrollment. See below for an enrollment guide detailing the number of credits in which a student must be enrolled/academically engaged to be considered full-time for financial aid purposes.
| Fall/Spring | Summer | |
| Graduate Students | 9 credits | 5 credits |
With the new Federal Direct Loan proration requirement, full-time students will receive the full amount of their annual loan offer. If a student is enrolled less than full-time, they will not be eligible to receive the full-time amount of loans offered to them. Instead, the university will calculate the amount of loan funding the student is eligible to receive based on the number of credits in which they are enrolled/academically engaged.
Graduate students may borrow up to $20,500 each academic year of a Federal Direct Unsubsidized Loan.
The formula we will use to determine how much of a federal direct loan a student may receive in a semester based on the number of credits in which they are enrolled is below.
Credit Hours Enrolled
_____________________________________________
Credit Hours required to be full time in a term
x Annual Direct Subsidized/Unsubsidized Loan Limit
At minimum, students need to be enrolled at least half-time to receive any Federal Direct Loan funding.
See below for an enrollment guide detailing the number of credits in which a student must be enrolled/academically engaged to be considered half-time for financial aid purposes.
| Fall/Spring | Summer | |
| Graduate Students | 5 credits | 3 credits |
When added to other financial aid resources, the loans amount may not exceed the cost of attendance at the time it is disbursed to the school.
Aggregate (Lifetime) Borrowing Limits:
In addition to the limits on the amount in unsubsidized loans that you may be eligible to receive each academic year (annual loan limits), there are limits on the total amounts that you may borrow from the U.S. Department of Education for undergraduate and graduate study (aggregate loan limits).
If you borrowed any type of Federal Direct Loan for the degree program in which you are currently enrolled before July 1, 2026:
The aggregate loan limit for graduate students = $138,500
| Annual | Lifetime | |
| Graduate Students | $20,500 | $100,000 |
| Professional Students | $50,000 | $250,000 |
Previous annual and lifetime limits will continue to apply to anyone who previously borrowed a Federal Direct Loan prior to July 1, 2026 and is currently enrolled in the same degree program they were when they borrowed a Federal Direct Loan for up to three academic years or until they complete their degree program, whichever comes first. Previously, graduate and professional students shared the same annual limit of $20,500 and lifetime limit of $138,500.
A $257,500 lifetime borrowing limit will apply to all federal student loans, with the exception of Parent PLUS and Graduate PLUS Loans.
To learn more about lifetime eligibility, visit studentaid.gov.
To have these loans applied to a student's account, the student needs to accept them within the goStockton portal and complete Entrance Counseling and a Master Promissory Note on studentaid.gov.
Visit stockton.edu/fafsa for instructional videos guiding you through the process. Once completed, the university will receive notice from the federal government and your account will be updated within 3-5 business days.
You will begin repayment on the principle 6 months after you stop attending half-time or graduate.
If you have received a subsidized, unsubsidized or PLUS loan under the Direct Loan Program or the FFEL Program, you must complete Exit Counseling each time you:
- Drop below half-time enrollment
- Graduate
- Leave school
Exit Counseling provides important information regarding your rights and responsibilities to the federal loans you borrowed while attending school. It also provides examples of the various repayment plans available and loan forgiveness options for certain professions. It is an important and valuable tool to prepare you for loan repayment success.
You must complete Exit Counseling no sooner than 30 days prior to your graduation date. Our office will be notified electronically once you have successfully completed the module. This process usually takes 1-2 business days. Holds are placed on your Stockton academic transcript and degree until the requirement is complete.
If you have completed your Exit Counseling during a previous term of enrollment, you must complete a new Exit Counseling 30 days prior to your graduation date.
It is important for students to be proactive and be sure they are making their payments on time. Students who make late payments or do not repay their student loans will be subject to late fees and could go into loan default, which affects their credit and ability to borrow in the future.
Below is a sample Loan Repayment Schedule for a sample loan of $3,500 with an interest rate of 3.73% and a standard 10 year repayment term.
| Year | Total Payment | Principal | Interest | Total Interest | Unpaid Balance |
|---|---|---|---|---|---|
| 0 | $3,500 | ||||
| 1 | $419.88 | $294.33 | $125.55 | $125.55 | $3,205.69 |
| 2 | $419.88 | $305.49 | $114.39 | $239.94 | $2,900.22 |
| 3 | $419.88 | $317.10 | $102.78 | $342.72 | $2,583.15 |
| 4 | $419.88 | $329.11 | $90.77 | $433.49 | $2,254.05 |
| 5 | $419.88 | $321.26 | $78.26 | $511.75 | $1,912.47 |
| 6 | $419.88 | $354.58 | $65.30 | $577.05 | $1,557.92 |
| 7 | $419.88 | $368.02 | $51.86 | $628.91 | $1,189.92 |
| 8 | $419.88 | $381.99 | $37.89 | $666.80 | $807.96 |
| 9 | $419.88 | $396.48 | $23.40 | $690.20 | $411.50 |
| 10 | $419.88 | $411.52 | $8.36 | $698.56 | $0 |
Learn more about Federal Direct Subsidized and Unsubsidized loans for undergraduate students at studentaid.gov.
Title IV Student Loan Code of Conduct:
Title IV is federal financial aid funding. Qualified institutions participate in the administration of Title IV funding on behalf of the federal government. Students apply for federal financial aid funding (Title IV funds) by filing a FAFSA each year. File at fafsa.gov.
Any institution that participates in any Title IV loan program must develop, publish, and enforce a student loan Code of Conduct. The Code of Conduct prohibits conflicts of interest with the responsibilities of the institution's officers, employees and agents related to Title IV loans.
Stockton University's Title IV Student Loan Code of Conduct is below.
The institution’s Code of Conduct includes a ban against each of the following:
- Employees shall not enter into revenue-sharing arrangements with any lender, including Title IV or private education loan lenders;
- Employees shall not accept gifts from a lender, guaranty agency, or loan servicer;
- Employees shall not accept any fee, payment, or other financial benefit (including the opportunity to purchase stock) as compensation for consulting or other contractual arrangement to provide education loan related services;
- Employees shall not steer a first-time borrower’s loan to a particular lender through packaging or any other method (for example, the school’s website or publications);
- Employees shall not refuse or delay certification of any loan based on a borrower’s lender selection;
- Employees shall not request or accept from any lender offers of funds for making private education loans (including opportunity pool loans) in exchange for providing concessions or promises for providing a specific number or volume of private loans, or for private loan preferred arrangements;
- Employees shall not accept call center or financial aid office staffing assistance from any lender, except under certain limited circumstances specified in statute and regulation; and
- Employees shall not accept compensation for service on advisory boards, commissions, or groups established by a lender or guarantor (or a group of lenders or guarantors), except for reimbursement of reasonable expenses incurred for such service.
*Employees encompass financial aid office or other school employees with financial
aid or education loan-related responsibilities.
The University shall enforce the above Code of Conduct by annually informing employees
of the provisions listed.
Students seeking private/alternative loan options can explore a historic list of lenders used by Stockton University students here.
The lenders and loan options presented include lenders who made a loan at the school
within three academic years.
The University does not participate in any perferred lender arrangements. You are free to choose any lender, including those not presented. If you choose a lender that is not presented, please contact the Office of Financial Aid. Application processing will not be delayed unnecessarily if you choose a lender not presented.
Our officials are prohibited from accepting any financial or other benefits in exchange for displaying lenders and loan options in FASTChoice. Prohibited activities include: receiving compensation to serve on any lender board of directors or advisory boards; accepting gifts including trips, meals, and entertainment; allowing lenders to staff our institution's financial aid office; allowing lenders to place our institution's name or logo on any of their products; and owning of lenders' stock (for college officials who make financial decisions for our institution).
